The facility, which spans 340 hectares, represents a significant boost to Lithuania’s defence sector and economy. With operations slated to begin in mid-2026, the plant will produce tens of thousands of 155mm calibre artillery shells annually, addressing Lithuania’s national security needs while bolstering European defence capabilities. The project will generate a €180 million direct investment in Lithuania, creating approximately 150 local jobs and integrating Lithuanian businesses into the production value chain.
🇱🇹🇩🇪 By mid-2026, the Rheinmetall factory in Lithuania will be operational! Today, key agreements were signed: one for land lease & one for purchasing 155mm ammunition. This strategically vital project will boost Lithuania’s defence industry & ensure the military’s needs are met. pic.twitter.com/olsNiN7jq9
— Lithuanian MOD 🇱🇹 (@Lithuanian_MoD) November 29, 2024
Prime Minister Ingrida Šimonytė underscored the strategic importance of the collaboration:
“From day one, the dialogue between the Lithuanian Government and Rheinmetall has been based on a mutual understanding of this project’s necessity and urgency. Our defence needs, the importance of the shortest possible supply chains, and the strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation.”
Rheinmetall’s CEO, Armin Papperger, expressed gratitude for Lithuania’s trust:
“It is and remains our aspiration at Rheinmetall to be one of the pillars of national and international security provision. This long-term partnership with Lithuania confirms this once again.”
The plant’s construction follows an agreement signed in June 2024, granting the project ‘state significance’ status, ensuring expedited processes and favourable conditions for its establishment. The facility will include state-of-the-art shell manufacturing and load assembly pack capabilities, further solidifying Lithuania’s standing in the defence industry.
Minister of Economy and Innovation Aušrinė Armonaitė highlighted the broader implications of the investment:
“By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. It is promising to see global leaders like Rheinmetall choosing to be part of this progress.”
Defence Minister Laurynas Kasčiūnas echoed these sentiments, emphasising the project’s dual benefits:
“The establishment of Rheinmetall’s ammunition factory in Lithuania is significant for both the defence industry’s development and our armed forces’ needs. Through joint efforts, we managed to reach an agreement on this historic and important project for our national security.”
This ambitious project represents a key milestone in Lithuania’s efforts to enhance its defence autonomy while strengthening its economic and strategic ties with Germany. As global security challenges grow, the facility signals Lithuania’s proactive approach to safeguarding its sovereignty and contributing to collective defence within NATO and the EU.
